36

, FOREIGN TRADE ZONES

ArT. 3. In order that the installation of the port and the railroads mentioned
in articles 1 and 2 may be carried out it is necessary that a company with a
bonded capital of 4,000,000 kroner be formed within four months after the promulgation
 of the law to take over the construction and equipment of the port.
By equipment is understood the warehouses, cranes, railroad, ete. It will also
defray the expenses of the upkeep of the construction work by the port authorities
 in the free port. This construction work (referred to in art. 1) will be
determined in detail by the secretary of the interior. In exchange for these
obligations the company will take over the exploitation of the free port for 80
years, but the State may terminate the concession at any time after 25 years
have expired. The company will collect the wharfage duties of the free port
during the period of the concession. (See art. 9.)
The secretary of the interior, who is authorized to award the concession
mentioned for the period indicated, shall stipulate in the concession that no
other concessions will be awarded for the installation and exploitation of a
free port within the limits of the port of Copenhagen during the period of
exploitation.
In the concessions it shall be stipulated:
(a) That the company must have its principal seat of business in Copenhagen.
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(b) That all the directors must be Danish subjects.
(¢) That the company must furnish security, by means of a deposit or in
any other satisfactory way, that the sum of 4,000,000 kroner (allowing a deduction
 for the expenses caused by the formation of the company, as well as
the loss of the interest during the time elapsed since the formation of the company
 until the whole port is open for exploitation, as will be later on determined
 by the secretary of the interior) is at any and all times available to carry
put the buildings and constructions that may be indicated in detail by the
secretary of the interior in accordance with this law.
(d) That of the net yearly income one-half is to go to the port commission
and the remainder to the company until it receives a yearly interest of 4 per
cent of the capital invested in the construction. Any resulting surplus will be
divided in the proportion of 4 to 1 between the port commission and the company
 until the port commission also receives for the same year an interest of
4 per cent on its total capital invested in the improvements made by it, the
value of the latter to be fixed by the secretary of the interior. Should there
still be a surplus, it will be divided in equal parts between the port commission
and the company. ,
The concession will also stipulate the amounts to. be set aside for the amortization
 and reserve fund to be created by the company.
After 25 years of exploitation the State will have the right at any time to
demand of the company all the property and the accumulated reserve fund
and appropriate the same for transfer to the port commission. In this event
the State or the port commission (besides taking over the bonded debt of the
company, contracted with the consent of the Secretary of the Interior) will pay
to the bondholders the value of the bonds as quoted on the Copenhagen Stock
Exchange during the last 10 years. The average of each year will be obtained
by taking one-half of the total sum of the maximum and minimum averages of
the quotations for each month. Bondholders will at no time be required to
zive up their bonds at less than par nor can they demand a quotation in excess
of 125 kroner for every 100 kroner.
The company must furnish an annual documentary accounting of its expenditures
 to the Rigsdag for its approval. Three years after the opening of the
‘ree port to exploitation the secretary of the interior may, with the consent of